Econ - Demand

Which of the following are correct?? The demand curve(i) is a curve that shows the maximum willingness to pay for a product.(ii) is a curve that shows the marginal benefit gained from a product.(iii) is a curve that shows the production cost of a product.(iv) is a curve that shows the relationship between the price of a product and a consumer's willingness to buy at each price.

(i), (ii) and (iv) are correct.

Suppose the demand curve for monthly subscriptions to Netflix has shifted to the right. What could have caused this?

a fall in the price of Netflix subscriptions an increase in the price of Netflix subscriptions an increase in the availability of Netflix subscriptions an increase in the incomes of consumers

A product with a network effect is: a drive-through window at a fast food restaurant. a social media tool such as WeChat in China. a broadband telecommunications network. the customer service line at the Department of Motor Vehicles.

a social media tool such as WeChat in China.

Which of the following businesses do you think will do well during a recession?

Luxury cruise lines Discount clothing stores Designer clothing stores Upscale restaurants

Janelle loves sashimi. Her first piece of sashimi normally gives her a marginal benefit of $5. Each additional piece yields a marginal benefit that declines by $0.25 per piece. If her favorite sushi bar charges $2.75 per piece of sashimi, how many pieces should she eat?

Needs Calculations done = 10

Maria's Pizza offers one slice for $2, two slices for $3.50, three slices for $4.50, and four slices for $5.00. Gil orders two slices. From this information, we know that the marginal benefit to Gil of a second slice is at least _____, and the marginal benefit to Gil of a third slice is less than _____.

Needs calculations done: $1.50 and $1.00

What type of buyer does this description illustrate? Burt chooses to buy a sandwich for $5 when the marginal benefit of the sandwich to him is $7.

Rational Buyer

If Canadian consumers expect the value of the Canadian dollar to rise against the US dollar, what impact would we expect this to have on Canadians' demand for American made products?

The demand for American-made items would fall. The demand for American-made items would not change. The demand for American-made items would rise. The demand for American-made items would double.

How will the demand for Gucci shoes change today, if the government decides to tax designer shoes next year?

The demand for Gucci shoes will shift to the right today. There will be no impact on the demand for Gucci shoes today. People will stop buying Gucci shoes today. The demand for Gucci shoes will shift to the left today.

Which of the following is not a demand shifter? The price of a substitute good. The price of a complementary good. The number of buyers in the market. The price of the product.

The price of a product

What would the following effect be on demand due to the factors below? A decrease in popularity of a good; a rise in income (if the good is an inferior good); a fall in the price of a substitute good.

cause a decrease in the demand for a good.

The demand for bottled water decreases at a time when people believe bottled water prices will soon fall. The change in demand is most likely attributable to a change in:

consumer expectations

Suppose that apples and pomegranates are substitute goods. The _____ pomegranates will increase when apple prices rise.

demand for quantity demanded of supply of quantity supplied of

If a product has a large network effect, it will lead to

greater marginal benefits from using the product and increased demand for the product.

A shift of the demand curve for fried chicken would NOT be caused by a change in:

income. the price of fried chicken. the price of hot dogs. the popularity of fried chicken.

Paint and paintbrushes are complements. A decrease in the price of paintbrushes will cause the demand for: paint to increase. paint to decrease. paintbrushes to decrease. both paint and paintbrushes to decrease.

paint to increase

Avery goes to the local supermarket to purchase one package of collard greens. She often pays $2.50 for a package, but she finds they are on sale for $1.50 each. According to the law of demand, shoppers like Avery will:

purchase an alternative good. purchase more collard greens than they normally would. decide not to purchase collard greens. buy the same amount of collard greens as they always do, on average.